Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

ASP Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Aspermont Limited (ASP), the free cash flow value is 2.44M.

All amounts in AUD

Operating Cash
2.48M
Capital Expenditure
-46k
Free Cash Flow
2.44M

Aspermont Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

ASP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aspermont Limited (ASX:ASP).

30 Sep 202030 Sep 201930 Sep 201830 Sep 2017
Net Income-970k-7.45M-943k-1.07M
Depreciation511k485k36k120k
Change To Netincome760k5.63M-1.32M-424k
Change To Account Receivables43k527k-630k2.01M
Change To Liabilities1.21M-163k2.28M-4.66M
Total Cash From Operating Activities2.48M-393k-436k-4.02M
Capital Expenditures-46k-36k-74k-16k
Other Cashflows From Investing Activities-57k-55k-55k3.3M
Total Cashflows From Investing Activities-636k-593k-725k2.94M
Net Borrowings-484k-346k-346k-1.56M
Other Cashflows From Financing Activities-58k-6k-169k-236.8k
Total Cash From Financing Activities615k-352k1.88M757.6k
Effect Of Exchange Rate-5k6k3k-41.6k
Change In Cash2.46M-1.33M717k-362.4k
Issuance Of Stock1.16M1.16M2.04M2.55M